Great Southern Mining Ltd (ASX:GSN) will execute aggressive exploration programs after receiving firm commitments for a $3.15 million placement with efforts to focus on the Cox’s Find Gold Project in Western Australia.
A new drilling program will start this month at Cox’s Find where previous reverse circulation drilling returned results of up to 5 metres at 31.23 g/t gold from 134 metres, including 1-metre at 143 g/t from 135 metres.
GSN also plans to use funds raised for extension drilling programs at Mon Ami Gold Project in WA, which is still open in all directions, as well as field mapping and sampling exploration at the Edinburgh Park project in North Queensland.
Projects near major gold operations
These three projects are within 15 kilometres of operating gold mills and major gold operations in highly prospective areas.
The projects are in the world-renowned gold districts of Laverton in WA and the Mt Carlton region of Queensland.
Executive chairman John Terpu said: “Our maiden drilling program at the Cox’s Find Gold Project has delivered us a wonderful platform for this capital raising with the results and structural interpretation and modelling combined with the geochemical program highlighting the potential of this ultra-high grade deposit.”
Other results from the maiden program at Cox’s Find were 5 metres at 14.54 g/t from 140 metres, including 2 metres at 28.85 g/t, and 8 metres at 6.61 g/t from 128 metres, including 2 metres at 19.92 g/t.
All up there has been five gold hits over an ounce so far.
Investors responded positively with shares as much as 27% higher to 6.1 cents intra-day before closing at 5.2 cents, which was 8% higher than the previous close.
Shaw and Partners Limited acted as sole lead manager for the raising, which involved the placement of 70 million shares at 4.5 cents per share with one free attaching Listed Option for every four placement shares issued.
The placement price represents a discount of 6.25% to the last closing price and a 1.69% discount to the 15-day volume-weighted average price.
Company “in strong position”
Terpu said: “The success of this capital raising is a testament to the hard work of the executive team in putting together the company’s portfolio of quality gold projects over the last two years.
“I also want to thank our advisers, Shaw and Partners for their support and efforts with this capital raising, particularly given the current economic climate.
“The company is now in a strong position to unlock value for shareholders with two brownfields drill-out opportunities in highly endowed gold districts in Western Australia in Cox’s Find and Mon Ami as well as additional greenfields discovery potential at Edinburgh Park in North Queensland.”
Work also at Mon Ami and Edinburgh Park
As well as the primary focus on Cox’s Find, a portion of the funds will be used to undertake extensional drilling programs at Mon Ami and to continue the targeting exploration programs at Edinburgh Park, with the expectations to have drill-ready targets before the year is out.
The Edinburgh Park work will follow a successful and highly encouraging Hyperspectral Survey co-funded with Evolution Mining Limited (ASX:EVN) in October 2019.
Terpu concluded: “The placement means the company is well funded to undertake aggressive exploration programs across all three projects during 2020.
“We are truly excited about the future of our company and look forward to strong newsflow as the drilling program kicks off in the coming weeks.”